Sustainable Entrepreneurship

Bogazici Universitesi, Istanbul

February 2012

Sustainable Entrepreneurship

Entrepreneurship Entrepreneurship transform innovations into economic goods

SustainabilitSustainability maintenance of responsibility to endure

Sustainable Entrepreneurship

SocialSocial EquitableEquitable

BearableBearable ViableViable

EnvironmentEnvironment

EconomicEconomic

SustainableSustainable

SE is closely linked with the principles of Sustainable Development, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends, but also based on the immediate and long-term social and environmental consequences of their activities.

Sustainable Entrepreneurship

is ….contributing to sustainable development by doing business in a sustainable way

the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the world and of future generations

 

‘… let’s choose to uniteunite the powers of markets with the authority of universal ideals. Let us choose to reconcile the creative force of private entrepreneurship with the needs of the disadvantaged and the requirements of the future generations…’

Kofi Annan United Nations Global Compact Network

Company

Supply Chain

Market

SocietyPublic

Employees

Government

Publicinstitutions

Creditors/banks

Communities

Businessorganizations

NGOs

Customers

Potentialcustomers Business

partners

Shareholders

Stakeholder Management

Private Sector in Market Developmentactivities along Value Chain

SocialBenefit

Risk

Business Benefits

Attracting funding for charity projects or social investments

Social investments that further business objectives and may contribute to local or international development objectives.------------- UN Global CompactUN Global Compact

-Fostering core business segments targeting at BOP along the value chain- Promoting investments in Pro-Poor goods & services-Supporting local entrepreneurs-------------

Growing Inclusive MarketsGrowing Inclusive Markets

Business Call to Business Call to ActionAction

Compliance Medium to High Strategic and

Operational Impact

Fundamental Strategic and Operational Impact

InnovationSustainable Business Models

Provide funding and skills

Little Strategic or Operational Impact

ValueCreation

Risk Management

Corporate Philanthropy

Private Sector unwilling/unable to improve/ expand services to Low Income Groups (LIG)

Lack of Tenure Results in Low consumption Unexplored Market High cost – Low profit Opportunities Lack of payment culture

Sustainable Entrepreneurship

Role of UNDP

UNDP helps the private sector use its resources to move beyond move beyond philanthropy philanthropy

toward a more sustainablesustainable approach to reaching out to the poor and to support sustainable development at global and national levels.

Inclusive Business ModelsInclusive Business Models

Sustainable Entrepreneurship

Include people with low incomes on the demand side as Include people with low incomes on the demand side as clients and/or as employees, producers and business owners clients and/or as employees, producers and business owners

at various points of the value chain.at various points of the value chain.

Businesses benefit from winning new consumers, expanding Businesses benefit from winning new consumers, expanding workforce and strengthening the supply and delivery chains.workforce and strengthening the supply and delivery chains.

LIGs benefit from meeting basic needs, having sustainable LIGs benefit from meeting basic needs, having sustainable earnings and achieving higher productivity.earnings and achieving higher productivity.

Environmental resources are used sustainablyEnvironmental resources are used sustainably

Report – Main Messages

1 Opportunities exist in ECA to include people with low incomes as consumers, employees, producers and entrepreneurs.

2 Inclusive business models can increase competitiveness

3 Widespread market constraints require innovative solutions

4 The support from others is often essential for success

5 Everybody can contribute to make business more inclusive

The support from others is often essential

15

• Governments create the legal environment that enables and motivates companies to include people with low incomes

• Associations and development agencies and banks support them.Policy Making

Research and Advocacy

Financing

Complementary Capabilities

Role Activities

• Research institutions, think tanks and specialist organizations create the empirical data, analytical knowledge and practical knowhow that guide the creation of effective models.

• Advocacy creates the broad-based awareness and support required to successfully initiate and implement such models.

• Grant and seed funding finances the start-up phases.• Subsidies and other shared-cost models improve the business case

around inclusion.

• Organizations that have longstanding experience in working with the target group often come in to train and inform them or take on other tasks that require local knowledge, networks, and trust.

Everybody can contribute to more inclusive business

• Identify opportunities for inclusion of low-income people• Take a fresh look at marginalized populations• Listen to advocacyCompanies

Governments

Development partners

Civil society organizations

Actor Potential for engagement

• Provide incentives for inclusive business• Improve the enabling environment• Inspire inclusive business models

• Establish community-based inclusive business models• Broker partnerships to enable inclusive business models• Provide funding and technical assistance

• Provide technical assistance• Advocate and raise awareness • Represent beneficiary interests

THANK YOU FOR YOUR ATTENTION!

hhansin.dogan@undp.organsin.dogan@undp.org

www.iicpsd.orgwww.iicpsd.org

www.undp.org.trwww.undp.org.tr